An MLP is a publicly traded partnership. The nature of a partnership provides for the "pass through" of income to its partners. Individual investors buy ownership interests, or units, in the partnership through a stock exchange similar to purchasing shares of stock in a corporation. Like other publicly-traded entities, MLPs file quarterly and annual financial statements with the Securities and Exchange Commission (SEC).

Southcross Energy will not pay any federal income tax. Instead, each unitholder will be required to report on their income tax return a share of our income, gains, losses and deductions without regard to whether corresponding cash distributions are received. Unitholders will receive a Schedule K-1 to advise of the income they are responsible for reporting on their individual income tax returns. The Schedule K-1 can also be viewed online. It is the responsibility of each unitholder to investigate the legal and tax consequences under the law of pertinent states and localities on their investment in Southcross Energy.